Corixa Corporation and Medicis Pharmaceutical Corporation Announce Multi-Year Development and Commercialization Agreement for Novel Psoriasis Immunotherapeutic Product

Strategic Insights -

Corixa Corporation and Medicis Pharmaceutical Corporation have entered into a multi-year development, commercialization, and license agreement for Corixa's novel psoriasis immunotherapeutic product, PVAC. Under the agreement, Medicis will have exclusive rights to PVAC treatment in the United States and Canada, while Corixa will be responsible for development and manufacturing. Medicis will commercialize and distribute the product, with plans to market it under a brand name to be determined later.

The agreement provides for payments of up to $107 million to Corixa, including a non-refundable payment of $17 million and potential development milestone payments of $35 million, as well as commercialization and cumulative net sales threshold milestone payments of $55 million. Additionally, Medicis will purchase inventory from Corixa and pay a royalty on net sales of the product.

PVAC treatment is currently in Phase II clinical trials for the treatment of moderate to severe psoriasis, with encouraging preliminary results demonstrating a greater than 75 percent decrease in disease severity in the 52-week trial. The main side effect was redness and erythema at the injection site.

Key Takeaways:

  • Corixa Corporation and Medicis Pharmaceutical Corporation have entered into a multi-year development, commercialization, and license agreement for Corixa's novel psoriasis immunotherapeutic product, PVAC.
  • PVAC treatment is currently in Phase II clinical trials for the treatment of moderate to severe psoriasis, with encouraging preliminary results.
  • Medicis will have exclusive rights to PVAC treatment in the United States and Canada, while Corixa will be responsible for development and manufacturing.
  • Medicis will commercialize and distribute the product, with plans to market it under a brand name to be determined later.
  • Corixa will receive payments of up to $107 million under the terms of the agreement.
  • PVAC treatment has the potential to be used by approximately 7 million people in the United States who suffer from psoriasis.
  • The product has a broad technology platform enabling both fully integrated vaccine design and the use of its separate, proprietary vaccine components on a standalone basis.

Statistics:

  • 7 million people in the United States suffer from psoriasis.
  • 30 percent of U.S. psoriasis patients have a moderate to severe form of the disease.
  • PVAC treatment demonstrated a greater than 75 percent decrease in disease severity in the 52-week trial.
  • The main side effect of PVAC treatment was redness and erythema at the injection site.
  • Corixa Corporation and Medicis Pharmaceutical Corporation will share revenue on a pro-rata basis consistent with each of Corixa's and Genesis' share of project development efforts.
  • Corixa will pay a percentage of revenue received related to the potential product to SR Pharma, Corixa's licensor for certain intellectual property related to PVAC treatment.

Sources:

  • Business Editors, Health & Medical Writers SEATTLE and PHOENIX--(BW HealthWire)--Aug. 15, 2000
  • Corixa Corporation (Nasdaq:CRXA) and Medicis Pharmaceutical Corporation (NYSE:MRX)